Family Business Transition

The Group regularly advises clients in the structuring and restructuring of ownership of closely held business enterprises, in the U.S. and abroad, to best achieve long-term family goals in a tax-efficient way. One of the major challenges facing family-owned businesses is generational transition, an area in which Sullivan & Cromwell has extensive experience. We draw upon the Firm’s full resources, including lawyers in our Estates and Personal, Corporate, Securities, Real Estate, Litigation and Tax Groups, to help families structure transitions that preserve the vitality and profitability of the company, and at the same time address family concerns regarding control and the division of wealth.

Recent examples that are in the public domain include:

• For many years S&C has counseled the majority of the Pritzker Family beneficiaries in the restructuring of their $25+ billion worldwide business empire, which includes interests in Global Hyatt Corporation, Marmon Corporation, TransUnion Corp., Royal Caribbean Cruise Lines and extensive international gaming operations.
• The Firm served as counsel to the Mara and Tisch Families, the owners of the NY Football Giants, in the $1.6 billion joint venture with the Johnson family, the owners of the NY Jets, to develop a new football stadium and entertainment and retail complex in the Meadowlands, NJ.
• The Firm represented a director and Bancroft family member in connection with News Corp.’s acquisition of Dow Jones for $5 billion. The Bancroft family controlled Dow Jones since 1902 and held 64% of the shareholder vote, primarily through family trusts.
• The Firm represented the Frist family and HCA management in the $31.6 billion sale of HCA Inc. (U.S.) to an investor group consisting of the Frist family, Bain Capital LLC, Kohlberg Kravis Roberts & Co. (KKR) and Merrill Lynch Global Private Equity (U.S.).
• The Firm advised the Santo Domingo Group Family (Colombia) and shareholders in the $7.8 billion sale of Grupo Empresarial Bavaria S.A. (Colombia) to SABMiller plc (U.K.).